Ethena Labs has abruptly pulled its bid to launch the USDH stablecoin, responding to mounting backlash and concerns about its wider goals. This decision comes just days before an important vote, giving validators a chance to rethink their choices and support other projects instead.
In his X post, founder Guy Young acknowledged community criticism and congratulated Native Markets on gaining validator support.
“Ethena is not a Hyperliquid native team, we have other product lines outside of USDH, and our ambitions extend beyond working with just one partner exchange,” Young said. He emphasized that concerns were valid and that Ethena respected the pushback.
The last few days have been incredible to witness. I’ve never seen a community rally around and engage with passion like this before.
Following direct discussions with individuals in the community and validators we have taken onboard some of the concerns, namely:
-Ethena is not…
— G | Ethena (@gdog97_) September 11, 2025
Focus Shifts to Product Innovation
Despite all this, Ethena is determined to ramp up its product development. The Founder Guy Young said that the team will be zeroing in on new offerings. Some of them are hUSDe synthetic dollars, USDe-powered savings tools, and cutting-edge HIP-3 market designs.
These include reward-bearing trading collateral, modular prime broking, and perpetual swaps on equities. Young highlighted that their excitement lies in building solutions that expand crypto’s utility.
Moreover, Arthur Hayes, co-founder of Maelstrom’s crypto investment fund, has been increasing his stake in Ethena. According to Arkham data, Hayes purchased nearly $1 million worth of ENA tokens within 48 hours.
This included 578,956 ENA tokens valued at $473,000 on September 11 and an earlier tranche worth $521,000. His buying spree comes ahead of Sunday’s critical vote on the USDH proposal.
As of writing, Ethena is trading at $0.767120, which shows a 2.86% decrease in the last 24 hours. The trading volume is still robust at $704.54 million, according to CoinMarketCap.
Ethena’s withdrawal reshapes Hyperliquid’s stablecoin while Arthur Hayes’ bold ENA purchases show continued belief in Ethena’s long-term vision.
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